Norfolk Southern reports 2Q earnings drop - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Norfolk Southern reports 2Q earnings drop

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    Monday, August 25 2014 4:00 PM EDT2014-08-25 20:00:48 GMT
    A tractor trailer is blocking part of Route 2. The road is closed until further notice. Drivers heading in both direction are being asked to use the Big Ben Bowen Highway connector by Target to get around.
    A tractor trailer is blocking part of Route 2. The road is closed until further notice. Drivers heading in both direction are being asked to use the Big Ben Bowen Highway connector by Target to get around.

Norfolk Southern Corp. reported second-quarter net income of $465 million on July 23, down 11 percent from $524 million for the second quarter of 2012.

Weakness in coal markets affected the company's earnings, as coal revenues were down 17 percent to $626 million in the quarter. The company attributed the drop to reduced global demand for U.S. coal and competition from natural gas.

Railway operating revenues were $2.8 billion, 3 percent lower compared with second-quarter 2012, with shipment volumes increasing 2 percent. Second-quarter 2013 fuel surcharge revenues were $306 million, or $59 million less than the same period last year.

General merchandise revenues were $1.6 billion, 2 percent higher compared with the second quarter of 2012, driven by increased chemical and automotive shipments.

Intermodal revenues increased 4 percent to $588 million compared with the same period of 2012. Volumes increased 5 percent due to continued domestic and international growth.

Railway operating expenses were $2.0 billion, 1 percent higher compared with second-quarter 2012.

Income from railway operations for the second quarter was $836 million, 10 percent lower compared with the same period last year.